Banking and Financial Awareness for RBI/IBPS Exams

Q1. In a company the use of price sensitive corporate information by the Company – people to make gains or cover losses is known as?
(a) insider trading 
(b) future trading 
(c) foreign trading 
(d) stock trading 

Q2. Which of the following cannot be called as a Debt Instrument as referred in financial transactions?
(a) Certificate of Deposits 
(b) Bonds 
(c) Stocks
(d) Commercial Papers
Q3. Which of the following committees has given its recommendations on “Financial Inclusion”? 
(a) Rakesh Mohan Committee 
(b) Rangarajan Committee 
(c) Sinha Committee 
(d) All of the above
Q4. Which of the following correctly describes what sub-prime lending is?
I. Lending to the people with less than ideal credits status.
II. Lending to the people who are high value customers of the banks.
III. Lending to those who are not a regular customer of a bank.
(a) Only I
(b) Only II
(c) Only III
(d) All of the above
Q5. The actual return of an investor is reduced sometimes as the prices of the commodities go up all of a sudden. In financial sector this type of phenomenon is known is?
(a) Probability risk
(b) Market risk 
(c) Inflation risk 
(d) All of the above
Q6. Which of the following statement is correct? 
(a) bearercheque can be transferred with endorsement and delivery only 
(b) ordercheque can be transferred with endorsement only 
(c) After a blank endorsement on an order cheque, the cheque can be negotiated further with delivery only
(d) endorsement on a bearer cheque makes it an order instrument 
Q7. Which of the following types of cheques can be endorsed? 
(a) account payee cheques
(b) bearer cheques
(c) cheques payable to the order
(d) cheque with restricted endorsement 
Q8. Which of the following cannot be endorsed? 
(a) A fixed deposit receipt
(b) A bank draft 
(c) A Promissory note
(d) A usance bill of exchange 
Q9. Restrictive endorsement is one in which? 
(a) Endorser endorses an instrument conditionally 
(b) Endorser restricts the further transfer by the endorsee
(c) Endorser endorses in favour of endorsee for his particular work 
(d) All of the above
Q10. Account payee crossing is an direction of the drawer to?
(a) To collecting banker 
(b) To drawee banker 
(c) To payee 
(d) To all endorsees